EAST ST. LOUIS – A federal grand jury has indicted three Metro East residents, alleging they fraudulently obtained over $20,000 each in pandemic relief funds through the Paycheck Protection Program (PPP). The indictments charge Katherine L. Liggins, 36, Eric C. Scott, 43, and Tamika N. Wilson, 44, all of Belleville, with wire fraud and making false statements.
At the time of the alleged misconduct, Liggins, Scott, and Wilson were full-time employees of the Veterans Affairs Regional Office in St. Louis County.
The U.S. Small Business Administration created the PPP to mitigate the financial hardships caused by the COVID-19 Pandemic, offering forgivable loans to struggling businesses for payroll and operational costs. “Countless small business owners and employees fell on hard economic times during the COVID-19 pandemic, and PPP loans allowed many to keep their families fed and lights on,” said U.S. Attorney Rachelle Aud Crowe. “In one of the most prevalent and widespread fraud crimes in history, the greedy individuals who sought to steal from the federal government under false pretenses and enrich themselves with PPP funds will be held accountable under the law.”
Liggins faces one count of wire fraud and one count of making a material false statement for allegedly lying to secure over $20,000 in PPP funds.
Scott is similarly charged with one count of wire fraud and one count of making a material false statement for allegedly obtaining and spending more than $20,000 in PPP funds under false pretenses.
Wilson faces two counts of wire fraud, two counts of making a material false statement, and two counts of submitting false documents, accused of fraudulently acquiring over $40,000 in PPP loans.
“These indictments send a clear message that VA employees will be held accountable if involved in fraudulent activities,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this investigation.”
The indictments also allege that the defendants used misinformation to apply for loan forgiveness, which was subsequently approved. An indictment is a formal charge and does not imply guilt. Under the law, defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Wire fraud convictions can result in up to 20 years’ imprisonment, while convictions for making material false statements or documents can lead to up to five years in federal prison. The Department of Veterans Affairs Office of Inspector General is contributing to the investigation, with Assistant U.S. Attorney Scott Verseman prosecuting the case.
